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Croatia reviews its regulatory framework for charter activities
While regulations still vary from country to country there is a consistent trend towards harmonization across the EU
The Croatian Ministry of Maritime Affairs has made it known that regulations on charter activities in Croatia have been extensively reviewed aligning them with rules in in force in other EU Member States.
Although the official text has not been released yet, the following changes are expected and will be effective as of the beginning of May 2017.
1. Until 2017, only charters starting in Croatia were subject to 13% VAT. As of May, if a charter starts outside the EU, 13% VAT will be due on charter fees for the number of days spent in Croatian waters.
2. The restrictions placed on non-EU commercial yachts under 40mt chartering in Croatia has been suspended. All non-EU commercial yachts will be allowed to charter.
3. All non-EU commercial yachts are required to purchase a charter license even if charters starts outside Croatia in another EU or non-EU country.The Ministry of Maritime Affairs issues a limited number of licenses every year and demand is expected to be very high. License can be purchased through a licensed ship agent and are valid for the entire calendar year.
All other provisions remain in place. The official text is expected to be published in a couple of weeks. We will keep you posted.